South Plains Financial Inc
NASDAQ:SPFI
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
South Plains Financial Inc
NASDAQ:SPFI
|
US |
|
S
|
Sichuan Furong Technology Co Ltd
SSE:603327
|
CN |
|
T
|
Trive Property Group Bhd
KLSE:TRIVE
|
MY |
|
Wajax Corp
TSX:WJX
|
CA |
|
Haitian International Holdings Ltd
HKEX:1882
|
CN |
|
W
|
Wha Yu Industrial Co Ltd
TWSE:3419
|
TW |
|
A
|
Al Jouf Cement Company SJSC
SAU:3091
|
SA |
|
P
|
Partron Co Ltd
KOSDAQ:091700
|
KR |
|
A
|
Aryt Industries Ltd
TASE:ARYT
|
IL |
|
G
|
Gezinomi Seyahat Turizm Ticaret AS
IST:GZNMI.E
|
TR |
|
T
|
Techno Medica Co Ltd
TSE:6678
|
JP |
|
S
|
Standard Premium Finance Holdings Inc
OTC:SPFX
|
US |
|
HES Technology Group Co Ltd
SZSE:002963
|
CN |
|
J
|
Jiangsu Tongxingbao Intelligent Transportation Technology Co Ltd
SZSE:301339
|
CN |
|
Cerestar Indonesia Tbk PT
IDX:TRGU
|
ID |
|
U
|
Unitas Holdings Ltd
HKEX:8020
|
HK |
Discount Rate
SPFI Cost of Equity
Discount Rate
SPFI's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 7.47%.
The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 4.34%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is SPFI's discount rate?
SPFI
's current Cost of Equity is 7.47%.
In the valuation of banks and insurance companies, only the cost of equity is used due to their unique capital structures and regulatory environments.
These institutions heavily rely on debt, regulated more stringently than other industries, making the Weighted Average Cost of Capital (WACC) less applicable and accurate for them. The cost of equity offers a more direct measure of the risk and return expectations relevant to these specific sectors.
How is Cost of Equity for SPFI calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for
SPFI
